AN EQUILIBRIUM SEARCH MODEL OF SYNCHRONIZED SALES

B-Tier
Journal: International Economic Review
Year: 2013
Volume: 54
Issue: 2
Pages: 473-493

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We demonstrate the existence of periodic nonstationary equilibria with self‐generating cycles in a simple model of random search. Our results provide a theory of synchronized sales based on product market search by heterogeneous consumers. That is, our model explains how it can be optimal for all sellers to follow a repeated pattern of posting a high price for several periods and then posting a low price for one period.

Technical Details

RePEc Handle
repec:wly:iecrev:v:54:y:2013:i:2:p:473-493
Journal Field
General
Author Count
3
Added to Database
2026-01-24